Credit Card Cash Withdrawal
If you own a credit card, you can withdraw money from it. Credit card cash withdrawal is the facility to withdraw cash from ATMs using your credit card in the same way you use a debit card. However, this facility comes with hefty charges and interest costs. This service should only be used in a real emergency. The cash advance fee makes this alternative a costly financial aid. Below are the details on credit card cash withdrawals.
Credit Card Cash Withdrawal Limit
There is a credit card cash withdrawal limit on every card beyond which you cannot withdraw cash via an ATM or bank. Out of your total available credit limit, you are assigned a cash withdrawal limit ranging from 20% to 40%. A credit limit is the maximum amount limit you can spend using a credit card whereas a cash advance or withdrawal limit is the maximum money you can withdraw using your credit card. You can contact the customer care team of your card issuer to know what is cash limit in credit card.
Advantages & Disadvantages of Credit Card Cash Withdrawal
Here are some of the pros and cons of the credit card cash withdrawal facility you must consider before swiping your credit card at the nearest ATM:
| Advantages | Disadvantages |
|---|---|
| 24X7 access to cash at ATMs during emergency situations | Incurs a relatively high cash advance fee on all transactions |
| No documentation or approval required | Interest is charged from the date of the transaction till the full payment |
| Flexible withdrawal limits | Cash advances transactions are not eligible for credit card reward points |
| No restrictions on end usage of the cash | No interest-free or grace period |
| Instant funding option compared to a personal loan or other loans | You must have a credit card to avail of this facility |
Cash Withdrawal Charges & Interest of Top Credit Cards
Here's a list of cash advance fees charged for some popular credit cards:
| Credit Card Name | Cash Advance Fees (Per Month) | Rate of Interest |
|---|---|---|
| Axis Bank Neo Credit Card | Axis Bank credit card cash withdrawal charges are 2.5% of the cash amount, a minimum of Rs. 500 | Interest on cash withdrawal from credit card of Axis Bank is 3.6% per month (52.86% per annum) |
| Axis Bank MY ZONE Credit Card | 2.5% of the cash amount, minimum Rs. 500 | 3.6% per month (52.86% per annum) |
| Axis Bank Select Credit Card | 2.5% of the cash amount, minimum Rs. 500 | 3.6% per month (52.86% per annum) |
| SBI Elite Credit Card | SBI credit card cash withdrawal charges are 2.5% or Rs. 500, whichever is higher | 3.50% per month (42% per annum) |
| SBI Prime Credit Card | 2.5% or Rs. 500, whichever is higher | 3.50% per month (42% per annum) |
| SBI Simply Click Credit Card | 2.5% or Rs. 500, whichever is higher | 3.50% per month (42% per annum) |
| IDFC First Millennia Credit Card | 0.75% to 3.5% of the transaction amount | 0.75% to 3.5% per month (9% to 42% per annum) |
| IDFC First Classic Credit Card | 0.75% to 3.5% of the transaction amount | 0.75% to 3.5% per month (9% to 42% per annum) |
| IDFC First Wealth Credit Card | 0.75% to 3.5% of the transaction amount | 0.75% to 3.5% per month (9% to 42% per annum) |
| AU Bank Zenith Credit Card | 2.5% of the amount withdrawn, minimum Rs. 100 | 1.99% to 3.49% per month |
| AU Bank Vetta Credit Card | 2.5% of the amount withdrawn, minimum Rs. 100 | 1.99% to 3.49% per month |
| AU Bank Altura Credit Card | 2.5% of the amount withdrawn, minimum Rs. 100 | 1.99% to 3.49% per month |
| HDFC Freedom Credit Card | 2.5% of the amount withdrawn, minimum Rs. 500 | 3.60% per month (43.20% per annum) |
| HDFC IndianOil Credit Card | HDFC credit card atm withdrawal charges are 2.5% of the amount withdrawn, with a minimum of Rs. 500 | 1.99% per month (23.88% per annum) |
| HDFC Infinia Credit Card | 2.5% of the amount withdrawn, minimum Rs. 500 | 3.60% per month (43.20% per annum) |
| Yes Bank ACE Credit Card | 2.49% of the amount withdrawn | 3.80% per month (45.6% per annum) |
| YES SELECT Credit Card | 3.80% of the amount withdrawn | 3.80% per month (45.6% per annum) |
| Yes Elite+ Credit Card | 3.80% of the amount withdrawn | 3.80% per month (45.6% per annum) |
| Kotak Urbane Gold Credit Card | Kotak credit card cash withdrawal charges are Rs. 300 per Rs. 10,000 or part thereof | 3.50% per month (42% per annum) |
| Kotak Royale Signature Credit Card | Rs. 300 per Rs. 10,000 or part thereof | 3.50% per month (42% per annum) |
| Kotak League Platinum Credit Card | Rs. 300 per Rs. 10,000 or part thereof | 3.50% per month (42% per annum) |
| HSBC Smart Value Credit Card | 2.5% of the transaction amount, minimum Rs. 300 | 1.99% to 3.49% per month |
| HSBC Visa Platinum Credit Card | 2.5% of the transaction amount, minimum Rs. 300 | 1.99% to 3.49% per month |
| HSBC Cashback Credit Card | 2.5% of the transaction amount, minimum Rs. 300 | 1.99% to 3.49% per month |
Impact of Credit Card Cash Withdrawal on Credit Score
Credit card cash withdrawals are not reported separately by the card issuers to the credit bureaus. Only the total outstanding amount due along with other defaults will be reported to the credit agencies. Withdrawing cash from credit cards does not have a direct effect on your credit score. However, if you could not pay even the minimum amount due (MAD) on your credit card within the period prescribed by the issuer, your credit score is impacted. Make sure you keep track of all the outstanding balances and clear the payment on time to keep your credit score stable.
FAQs
Generally, withdrawing cash using your credit card is discouraged by credit card providers since you are borrowing hard cash. To prevent misuse of this facility, the card issuers levy certain fees and charges on credit card cash advances.
A card issuer charges a cash advance fee for every transaction you make using your credit card. Typically, most credit card providers charge either a certain percentage of the cash advance or a fixed fee. Top banks in India usually charge about 2.5% of the transaction amount as a cash advance fee, subject to a minimum of Rs. 250 to Rs. 500.
If you are confused about how to withdraw money from credit card, don’t worry. Withdrawing cash using a credit card is easy. You just need to follow the same process as you would do withdrawing cash from a debit card. Visit your nearest ATM and insert your credit card into ATM machine to withdraw the required cash anytime. You can withdraw cash with a credit card from any bank’s ATM. However, certain banks may levy separate credit card ATM withdrawal charges for withdrawing cash from other banks’ ATMs. If you still have any queries, you can ask your credit card provider’s customer care team about how to withdraw cash from credit card.
Credit card cash withdrawals involve interest as they are not eligible for the interest-free period. Finance charges or credit card interest rates will be applicable on cash transactions from the first day. These charges are quite high and can range from 2.5% to 3.9% per month. The interest is compounded on a daily basis, which means that the longer your cash advance remains unpaid the more interest will be accumulated. Hence, it is advised not to opt for cash withdrawals on credit cards and, even if you do so, try to pay back the amount as early as you can.
If you want to know can withdraw money from a credit card, the answer is yes. Most credit cards come with a cash withdrawal facility. Just ask your credit card provider ‘Can we withdraw cash from your credit card’.
Yes, you have to pay a cash advance fee for availing of the credit card cash withdrawal facility.
The credit card cash withdrawal charges on top credit cards in India range between 0.75% to 3.80% of the amount withdrawn per month.
Yes, ICICI credit card cash withdrawal charges are 2.5% of the withdrawn amount or Rs. 300, whichever is higher.
There are a few credit cards that involve zero cash advance fees. Just ask your credit card provider if they have this facility.
No, this facility is available on select credit cards and the cardholder is informed beforehand about it.
No, you don’t need any approval from the card issuer if your credit card has this facility. Just visit any ATM and withdraw cash using the card almost immediately.
You have to repay the withdrawn cash at the time of making payment for your card statement. You don’t need to pay the amount in cash. It can be made online through net banking, UPI, demand draft, etc.
HDFC credit card cash withdrawal charges are 2.5% of the amount withdrawn, subject to a minimum of Rs. 500. You must ask the customer support team about HDFC credit card withdrawal charges as certain credit cards may have different charges.
Yes. Most ICICI credit cards come with this facility with certain ICICI credit card atm withdrawal charges. If you want to this facility for free, you can ask the card provider how to take money from a credit card without charges. Some issuers also offer certain credit cards without any credit card withdrawal charges.
If your credit card has a cash withdrawal facility, you can go to any nearby ATM and use your credit card just like a debit card to withdraw cash. You can also withdraw money from a credit card without charges if the card comes with a zero cash advance fee feature.
SBI credit card ATM withdrawal charges are usually 2.5% or Rs. 500, whichever is higher. If you want to know how to withdraw money from a credit card without a fee, you can contact your credit card provider’s customer care team.
The answer to how to take cash from a credit card is just to insert your credit card into the ATM kiosk with your ATM credit card and follow the instructions just as you do with a debit card.
If you are confused about can use a credit card in an ATM, the answer is yes, if your credit card comes with a cash advance facility.
Flipkart Axis Bank credit card cash withdrawal charges are 2.5%, subject to a minimum of Rs. 500 of the cash amount.
The BOB credit card cash withdrawal charges are 2.5%, subject to a minimum of Rs. 200.